Collegebooks Company has two locations, downtown and on campus. During March, th
ID: 2358721 • Letter: C
Question
Collegebooks Company has two locations, downtown and on campus. During March, the company reported net income of $237,000 and sales of $1.2 million. The contribution margin in the downtown store was $320,000 (32% of sales). The contribution margin in the campus store is $110,000. Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location. How much are total variable costs? $770,000 $3,750,000 $192,000 $853,000 How do I come up with this answer. Please, please, please show your work. Thanks!!!Explanation / Answer
$3,750,000